KELER Ltd., the Hungarian CSD, has published an information bulletin regarding its services with respect to market claim and transformation services. These services will be introduced once Hungary joins T2S on 06 February 2017.
As communicated earlier, during the CA Working Group meetings, it was identified that the introduction of such T2S services in full extent would only be feasible if certain regulations, namely Capital Market Act, Civil Code and Tax Act are modified by the accession date. By now, it is clear that the necessary amendments in the respective laws will not be carried out either by 04 October 2016 (the deadline for submitting the T2S accession documentation) or by 06 February 2017. Thus, KELER has officially notified ECB about the partial compliance of the CASG recommendations and asked for derogation from full compliance with respect to these services until the end of 2017.
Under partial compliance, KELER will introduce the automatic market claim services only for fixed income instruments as this can be supported on the basis of current prevailing regulations. According to KELER’s plans, the service for equities will be introduced during the course of 2017 once the necessary laws have been amended.
Transformation and Buyer – Protection, under CASG recommendations will be available from the day that Hungary joins T2S – 06 February 2017.
Impact on investors: From day of Hungary joining T2S automatic Market Claim offered by KELER will only be available for fixed income instruments – and for equities only later, during the course of 2017 once the necessary laws have been amended. Transformation and Buyer – Protection, under CASG recommendations, will be provided by KELER for the Hungarian market from the day that Hungary joins T2S – 06 February 2017.